For insurance I will have liability insurance on the holdings company just in case of spillover liability.

Lots of really smart people are in jail, RE carries much more liability to an individual than almost any other sales oriented business.

Have you thought of getting simply insurance over the properties with liability of what you are looking for, I know my insurance company USAA offers specifics for that and it's covered.

(Just requires an enormous amount of READING codes LOL)Emily DixonQuestion, I read my general liability policy in depth.

I've read that forming an LLC to purchase the property is a good way to protect ourselves from liability.

(electrical, plumbing, etc.) then use them, it will save you money and liability, in the long run.Basically, ask alot of questions from different people, and weigh all the options!

The non-profit really has the best built in liability protections.Owning properties holds different risks than being a lender, but if you actually lend, you have almost as many issues (and much more compliance) than owning properties.You need to assess what you will be doing and identify the types of risk exposures you will assume, avoid and insure against.

Just as you wouldn't buy $100 million of liability insurance if you owned nothing, so too is it financially foolish to leave extreme sums of capital sitting around in any entity doing nothing. 

That said, if you had an general liability policy, errors and omissions policy as well a commercial auto coverage, those would be the coverages to concentrate on.

Both plans generally offer the same kind of liability protection from tenants as long as you follow proper protocol.